The Financial Services Union (FSU) has described KBC Bank Ireland's announcement that it will begin informing customers from June that they need close their current accounts within 90 days as irresponsible.
The union said the plan ignores the bank’s societal obligations.
Yesterday KBC said that from June 1 it would start writing in a phased manner to its 130,000 current account customers to tell them that they need to shut their accounts ahead of its withdrawal from the Irish market.
However, the General Secretary of the FSU said the decision shows a complete disregard for customers.
"It is clear from all reports that the banking sector is not ready to deal with the additional workload that will flow from the exit of Ulster Bank and KBC," said John O'Connell.
"All the main retail banks have failed to staff up and make the necessary resources available to ensure that staff and customers are not adversely affected from the exit of Ulster Bank and KBC," he added.
There are concerns within the banking sector and among regulators that the banking system is not ready to cope with the flux that will be caused by the withdrawal of both KBC Bank Ireland and Ulster Bank.
The Governor of the Central Bank recently told an Oireachtas committee that he would not say that everybody is ready "by any stretch", but Gabriel Makhlouf added that the bank is fully engaged with the institutions.
It comes amid anecdotal reports that customers are having to wait months for appointments to open new accounts in the banks that are remaining in the market.
The Central Bank also recently found that there were unacceptable delays in some banks when it came to answering calls on customer support lines.
"Yet KBC have ignored all these warnings and put expediency ahead of their social obligations," said Mr O’Connell.
"Giving customers 90 days to close their account when at the same time it is nearly impossible to get a call answered from any of the main retail Banks demonstrates a complete disregard for their customers."
"It is inconceivable that the regulator will not intervene at this stage to ensure that realistic timelines are set and adhered to by both KBC and Ulster Bank," he said.
KBC said yesterday that in order to assist customers it is putting a number of additional supports in place in its mobile app, contact centre and website to ensure that the process is as smooth as possible.
However, the FSU said it is not acceptable that bank branch staff have to deal with the frustrations of the general public due to an ongoing lack of a clear plan and appropriate resources and staff to ensure an orderly transition.
